Govt launches banking payment systems consultation

27 March 2013

A new consultation over the regulation of payment systems in the British banking sector has been launched by the government.

The Conservative-Liberal Democrat alliance yesterday (26 March) announced that it is considering the introduction of a new system of competition-focused regulation for this part of the market.

This reform would involve "strong new powers" being granted to an existing regulator to make sure that challenger banks are in a position whereby they are able to compete on a level playing field with their larger, more established counterparts.

It forms part of the government's commitment to create a more competitive financial sector that is primarily focused on the needs of the consumer - and may include provisions such as the setting of a fair price for major financiers to charge access to payments infrastructure.

Chancellor George Osborne commented: "Our banking system is too concentrated. We want new banks on our high streets offering real competition and challenging for better customer service. I am determined to deliver that."

By Gary Cooper

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